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Apr 6, 2014 @ 12:01 am

How many sharks are in the water?

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column by Bruce Kelly on a broker-dealer that employs an unusually large number of brokers with disclosure events on their BrokerCheck records touched off a debate among readers about just how extensive the issue of problem brokers is in the industry.

“Another great article, Bruce. Even though I make a living as a lawyer pursuing bad brokers, I am still sad to see the industry — 95% of whom are honest, caring people — suffer because of the few.” — Brian Mahany

“How do you come up with the 5% of brokers are bad or unethical? It sounds like you are just pulling numbers out of thin air to justify your existence. Typical lawyer. “ — Guest

“I was in the industry during the "80s and had my principal's license. I have good firsthand knowledge. There is a small percentage of the industry that has no clue of what they are doing. If you look at the statistics on BrokerCheck (as compiled in a recent WSJ article), there is just a small percentage of bad brokers out there. Unfortunately, the mess they create hurts the image of the industry.” — Brian Mahany

“Wow! You're jumping all over Brian for saying just 5% of brokers are bad or unethical?!?! A LOT of us think the percentage is A LOT higher than that!! First of all, it's a service industry that doesn't have to take a fiduciary responsibility to its customers. You don't think that opens up a whole realm of irresponsibility to clients? Many bad eggs actually convinced themselves that they are moral, yet they are out only for themselves. Heck, Allen Stanford is serving 110 years and he still claims that his clients would get their money if only authorities hadn't intervened to stop him!!!!!” — AssnapKined

“Frivolous complaints get on a broker's permanent record; even a manager who doesn't like a broker can slap something on a broker's U4 and make up anything to fire them, and ruin their life and career. Who is protecting the financial advisers and brokers trying to do their best dealing directly with the investing public? No one. We are the bad guys, like how we are depicted in that garbage movie "The Wolf of Wall Street.' LAME!” — Guest